Soaring biodiesel prices were offset by the continued runup in soybean oil values, leaving margins unchanged from last week. Soybean oil remains the primary feedstock used in the production of biomass-based diesel.
In the Energy Information Administration’s (EIA) latest ‘Monthly Biofuels Capacity and Feedstocks Update’, soybean oil accounted for 46 percent of all domestic biomass-based diesel production, easily outpacing the second largest feedstock, yellow grease, representing 18 percent of the feedstock total.
The bean oil/heating oil spread (BOHO) measures the profitability for producing biodiesel from soybean oil. The higher the spread the more costly production. When the spread rises, RIN values generally increase to offset rising production costs.
The BOHO spread declined in value over the past couple of weeks, while RIN prices moved higher. If…
04.15.2024
Soybean oil stocks climb as soybean crush reaches record high
The National Oilseed Processors Association (NOPA) reported the March soybean crush at an all-time high of 196.406 million bushels. This was largest crush on record, outpacing by 0.55%,...
04.15.2024
Soybean oil market adds negative pressure to DCO market
Distiller’s corn oil (DCO) traded in a range of 45.5 - 46 cents lb delivered US Gulf today on what was otherwise a quiet trading day.
The lower...
04.15.2024
Hog slaughter forecast lower into May
Market sources reported no trades outside the previously set ranges for animal proteins in the US for Monday April 15.
For the week ending April 20, 2024, hog...